7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 1/46
AboutthePresenter
BassamSamman,PMP,PSP,EVP,GPMholdsaBachelor’sDegreeinCivilEngineeringfrom
KuwaitUniversityandaMastersDegreeinEngineeringandAdministraonfromGeorge
WashingtonUniversity.Heiscurrently
pursuingaPhDattheUniversityofSalford,
UK.HeisacerfiedProjectManagement
Professional(PMP),acerfiedPlanningand
SchedulingProfessional(PSP),EarnedValue
Professional(EVP)andGreenProject
Management(GPM).HeisthoroughlyexperiencedincompleteProjectManagement
includingprojectmanagementcontrol
systems,computerizedPCSSoOware,riskanalysis,sitemanagement,claimsanalysisand
prevenonandalternavedisputeresoluon.
Bassamhas30yearsexperienceinProject
ManagementConsultancy.
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 2/46
UsingProjectPorolioManagement(PPM)ToSelectTheRight
ProjectInvestments
§ Howtoalignprojectinvestmentswiththeirstrategicobjecves§ Howorganizaonscanidenfy,analyze,assess,select,priorizeandauthorizeproject
investments
§ MonitorandcontroltheexecuonofthoseInvestments
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 3/46
Howtoalignprojectinvestmentswiththeirstrategicobjecves
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 4/46
PungItAllTogether:
Vision,StrategicResult,StrategyTheme,bjecveandIniaves
Ini$a$vesWeWillTake
SMARTResultsThatWeNeed
WhatAreTheDesiredOutcomes
WhatAreTheDesiredEnd-state
WhereWeWantToBe
Vision
StrategicResult
StrategyTheme
Objec$ve Ini$a$ve
Objec$ve Ini$a$ve
StrategyTheme
Objec$ve Ini$a$ve
StrategicResult
StrategyTheme
Objec$ve Ini$a$ve
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 5/46
ProjectsNeedToBeAlignedWiththerganizaon’sStrategicNeeds
SpeedtomarketQuality
Cost
Service
MarketShare
GeographicalExpansion
TechnologyAdvances
ProductInnovaon
CustomerInmacyVercalExperze
RevenueGrowth
Profits
Shareprice
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 6/46
AbuDhabi2030
© 2009 CMCS FZCO
AbuDhabi2030
2013:1.8Residents&1.8Annualtouristsperannum
Officespace2.5MSF
Retailspace1.5MSF
Industryspace6.5MSF
Hotelrooms21,000
Golfcourses10 Schools330
Ter$ary
ins$tu$ons25
Hospitalbeds
4,500
Residen$alunits180,000
2020:2.0Residents&4.9Annualtouristsperannum
Officespace3.5MSF
Retailspace2.5MSF
Industryspace10MSF
Hotelrooms49,500
Golfcourses18 Schools450
Ter$ary
ins$tu$ons30
Hospitalbeds
6,500
Residen$alunits411,000
2030:3.1Residents&7.9Annualtouristsperannum
Officespace7.5MSF
Retailspace4.0MSF
Industryspace15MSF
Hotelrooms74,500
Golfcourses25 Schools650
Ter$ary
ins$tu$ons40
Hospitalbeds
10,000
Residen$alunits686,000
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 7/46
Example:Hotelperator
© 2009 CMCS FZCO
Theno.1four-starhoteloperatorintheMiddleEast5,900rooms
KSA
2,000rooms
UAE
1,150rooms
AbuDhabi
500rooms
Dubai
450rooms
BurDubai
200rooms
Deira
250rooms
Sharjah
200rooms
Kuwait
250rooms
Others
2,500rooms
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 8/46
Example:MinistryofElectricityAndWater
© 2009 CMCS FZCO
Meettheincreaseddemandby10%
Increasecumula$vegeneratedpowerto
9,000MW
Newpowerplants
Newsubsta$ons
Newtransmissionnetwork
Increasedis$lledwatercapacityto
450MIG
Newplants
Newdistribu$onnetwork
Increasestrategicwaterstorageto
7,000MIG
Newwatertanks
Newpumping
sta$ons
ConnecttoRENG
HVtransmissionnetwork
Newcontrolcentre
U$lisenewsourcesofenergy
R&Dofavailablesources
Encouragepriva$sa$on
Developnewrulesandcontracts
Promotepriva$sa$on
Reduceelectricity&waterconsump$on
Newawarenesscampaigns
Maintainexis$ngassets
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 9/46
Qatar2022:MorethanUS$60BillionInProjects
Qatar2022
Infrastructure
Roads Railway Housing Stadiums
AlDaayen
LusailIconicStadium
Doha
KhalifaInternaonalStadium
SportsCityStadium
DohaPortStadium
QatarUniversityStadium
AlKhor
Al-KhorStadium
Ash-Shamal
Ash-ShamalStadium
AlWakrah
AlWakrahStadium
UmmSalal
UmmSalalStadium
AlRayyan
EducaonCityStadium
Al-GharafaStadium
Al-RayyanStadium
Qatar-BahrainCauseway
IT thers
VisaRegulaons
© 2011 CMCS FZCO 9
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 10/46
Howorganizaonscanidenfy,analyze,assess,select,priorizeandauthorizeprojectinvestments
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 11/46
WhatIsProjectGovernance?
SelectTheRightProjectInvestments
Ensuringthattheorganizaonhasthe
frameworktocorrectlyidenfy,analyze,
evaluate,selectandauthorizetherightproject
investmentsthatarealignedwiththe
organizaon’sstrategicgoalstoachievethedesiredvision.
Wrongseleconofprojectinvestmentsnot
onlywillwastethosefundsbutprevented
otherprojectinvestmentsfromusingthose
fundsandwastedtheopportuniesthatcould
haveresultedfromthoseprojects.
DeliverProjectInvestmentsRightFromTheFirstTime
Ensuringthattheorganizaonhasthe
frameworktocorrectlyiniate,plan,execute,
monitorandcontrolandcloseoutselected
projectinvestmentsrightfromthefirstmeas
wellasdocumentlessonslearnedtoavoidsimilarmistakesandenhanceprojectdelivery.
Wrongprojectdeliverymeansthatthecostof
thisprojectwouldincreasewithincreasingthe
valueofthisproject.Inotherwords,theRI
thatthisprojectwasselectedon,willnotbecomevalidanymoreandasiftheorganizaonhasselectedthewrongproject.
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 12/46
ProjectandPorolioProjectManagementIntegraon
© 2009 CMCS FZCO
Aligning
Identification
Categorization
Evaluation
Selection
Prioritization
Identify Portfolio Risks
Authorization
Monitoring &Controlling
Review and Report Portfolio
Performance
Monitor and Control
Portfolio Risks
Benefit Realization
Strategic
Planning
Analyze Portfolio Risks
Develop Portfolio Risk Responses
Portfolio Balancing
Communicate Portfolio Adjustments
Monitor
Business Strategy Changes
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 13/46
Projectsinventorylist
© 2009 CMCS FZCO
Aligning
Identification
Categorization
Evaluation
Selection
Prioritization
Identify Portfolio Risks
Authorization
Monitoring &
Controlling
Review and Report Portfolio
Performance
Monitor and Control
Portfolio Risks
Benefit Realization
Strategic
Planning
Analyze Portfolio Risks
Develop Portfolio Risk Responses
Portfolio Balancing
Communicate Portfolio Adjustments
Monitor
Business Strategy Changes
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 14/46
ExamplesofCauseofWorkRequest
Complywithanewlegislaon
NeedtoreduceC2emission
Creangnewjobsforlocals
Improvingtheimageoftheorganizaon
Reducepowerconsumpon
ReducefatalcaraccidentReducetrafficjam
Providebeerservicetothepublic
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 15/46
WhatAreTheInvisibleProjects?
HumanResourcesHiring,Development,etc.
LegalandCompliance
Finance
Sales
BusinessDevelopment
MarkengSupport
Services
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 16/46
ProjectAributes
Aribute PossibleAributeValue
Strategicobjecve Increaserevenue;improvecustomerservice;reducecost;improveproduc$vity,RegulatoryCompliance,
Reducedcycle$me,Improvecustomerreten$on,improvecustomersa$sfac$on
Businessunit Enterprise;Humanresources(HR);legal;marke$ng;explora$on;engineering;opera$ons;maintenance;
logis$cs;sales
Geography Byregionorcountry,etc.
Funconalarea Network;telecom;customerservice;clientcontact
Projecttype Newdevelopment;enhancement;infrastructure;processimprovement;packageimplementa$on;
produc$onsupport
Businessprocess Aractcustomer;managecustomerrela$ons;plancapacity;developandtestproduct;launchproduct
Budgetaryunit Humanresources;accoun$ng;opera$ons;development;disabledbudgetary;budgetaryunit1;
budgetaryunit2,etc.
Applicaontype Clientrela$onmanagement(CRM);businessintelligence;E-business;financials;helpdesk;
procurement;supplychain;projectmanagement;businesscon$nuity,etc.
Contribuonto
strategy
Foreachstrategicimpera$ve:Direct,indirectorabsent
Healthstatus Overallhealth;budgethealth;schedulehealth;deliverableshealth,etc.
Projectstate Candidate;planned;in-process;onhold;cancelled;rejected;completed
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 17/46
ProjectInvestmentsListWithAributes
© 2011 CMCS FZCO 17
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 18/46
Projectsevaluaonandselecon
© 2009 CMCS FZCO
Aligning
Identification
Categorization
Evaluation
Selection
Prioritization
Identify Portfolio Risks
Authorization
Monitoring &Controlling
Review and Report PortfolioPerformance
Monitor and ControlPortfolio Risks
Benefit Realization
Strategic
Planning
Analyze Portfolio Risks
Develop Portfolio Risk Responses
Portfolio Balancing
Communicate Portfolio Adjustments
Monitor Business Strategy Changes
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 19/46
ProjectsSeleconMethod
Murderboard:TheHeadofState,CEofanorganisaonorsteeringcommieecanadvisewhichprojectsshouldmaketheselectedprojectslistandwhichshouldnot.
Peerreview:Theheadofotherfunconaldepartmentsorministersofotherministriescan
advisewhichprojectsshouldmaketheselectedprojectslistandwhichshouldnot.
Scoringmodels:Differentcategoriesshouldbeidenfiedthateachprojectshouldbescored
against.Thesecategorieswillhavevaryingdegreesofimportanceandeachshouldbeaributed
ascorevalueforeachproject.Seleconwillbethenbasedonprojectsthathavereachedacertainscore.Economicmodelsisoneofthosescoringmodels.
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 20/46
Economicmodels
PayBackPeriod:Thepointofaprojectwhentherevenueequalsthecost.Bycomparingthemeperioditwilltaketorecovertheinvestmentwillshowwhichprojectsaremorefinancially
viable.
ReturnonInvestment(RI):Averageprofitsaredividedbytheaveragecostsexpectedoverthe
project’slife.
InternalRateofReturn(IRR):Therateatwhichaproject’sinflowsandoulowsareequal,
thereforewhenitwillstopmakingalossandstartbreakingevenormakingaprofit.DiscountedCashFlow(NetPresentValue):Thedifferencebetweenthepresentvalueofthe
projectrevenueanditscosts.
BenefitCostRao(BCR):Thiscomparesthecostofthedifferentprojectswherebenefitsarethe
sameasrevenue.BCRGreaterthan1meansthebenefitsaregreaterthanthecost.
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 21/46
Example:WorldBankProjectFinancialAnalysisSpreadsheet
Label UNITS
Construc>onPhase YRCON 2011 2012
SURCESFFUNDSDrawdownofEquity EQ USD 0.00 0.00
DrawdownofLoans USD
USESFFUNDS
Engineering,ProcurementandConstruc$on EPC USD 0.00 0.00
Ofwhich:Importdu$esandothertaxes IMPD USD 0.00 0.00
OtherExpenses OTEC USD 0.00 0.00
FinancialFees FFC USD 0.00 0.00
InterestPaid USD -- --
KEYFINANCIALPARAMETERS
Benchmark(LIBOR,etc.) BMC % 0.00% 0.00%
ExchangeRate EXC USD/USD
Opera>onPhase YROPER 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PRJECTEDPERATINGDATA
Opera$ngRevenues OR USD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
OtherIncome OTHI USD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Opera$ons&Maintenance OM USD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Opera$ngInputExpenses OINPT USD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FinancialFees FFO USD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
OtherExpenses OTEO USD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
InterestPaid USD -- -- -- -- -- -- -- -- -- --
KEYFINANCIALPARAMETERS
Benchmark(LIBOR,etc.) BMO % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
ExchangeRate EXO USD/USD
TaxRate TAXRATE % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Deprecia$onSchedule DEPSCH % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
LANAMRTIZATINSCHEDULES
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 22/46
ProjectsNonTangibleBenefits
ComplywithnewLegislaon
Reducethenumberoffatalaccidentsby%
ReduceC2emissionby%
CreateXXXXnewjobsforlocals
ReducethenumberofaccidentsattheHajSeasonby%
ReducethetravelmefrompointAtopointBby%Reducepowerconsumponby%
Reducechildrenundertheageof2mortalityby%
Reducethelatebreastcanceridenficaonby%
Reduceprojectfraudby%
Changemanagerstoleadersby%
Reducethemetocompleteapublicserviceby%
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 23/46
ProjectScoringModel
TotalProject
Score
ValueToTheOrganiza$on
Financial
ROI
PaybackPeriod
NPV
Strategic
Compe$$veIssues
NewBusinessIssues
CapabilityImprovement
RiskExposure
Schedule
Budget
Technical
ValueToOthers
Socio-
Economic
JobsCrea$on
ReducePoverty
Environment
Pollu$on
CO2Emission
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 24/46
Sample:ProjectSeleconScorecardTemplate
Scorecard Criteria 0 Points 10 Points Rating Weight Average
Financial Risk v Return High risk, low return High return, low risk10 20% 2
Long payback period Short payback period
Strategic Fit Not important to Critical to business10 20% 2
business strategy strategy
Product Not a significant product, Major new product,10 10% 1
same as competition better than competition
Market Attractiveness Small market, Large growing market10 20% 2
hard to serve business can serve it
Technology Adoption Life Cycle Late to market, Early to market,10 10% 1
many substitution choices no rivals present
Synergies Lacking required skill Can leverage10 10% 1
to perform project current skills
Technical Feasibility Unknown technology, Known technology, 10 10% 1
expected difficulties few difficulties
Totals70 100% 10
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 25/46
PresenngTheProjectScoringValues
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 26/46
CapacityPlanningAnalysis
Execuves,managers,andplannerstaskedwithmanagingaporolioofexisngprojectsandnewopportuniesinthepipelineneedawaytoevaluatebothacveandproposedprojectsto
answeroneessenalqueson:Dowehavetheresourcecapacitytosuccessfullycompleteallthework?
TheCapacityPlanningprocesshelpsanswerthisqueson.Itrevealswhenanorganizaonisover
orunderallocated.Decisionstoproceed,delay,freeze,orterminateprojectscanthenbemade.
CapacityPlanninganalysisisaprocessthatwillensurethatorganizaonhasthecapacitytodelivertheselectedprojects.Ithelpstobalancetheprojectloadontheorganizaon.
§ Scarehumanresourcecapacityanalysis
§ Capitalandfinancialcapacityanalysis
§ Assetscapacityanalysis
© 2009 CMCS FZCO
Stacked Histogram Chart Displaying Units Usage as per role assigned
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 27/46
StackedHistogramChartDisplayingUnitsUsageasperroleassigned
foraprojectinaPorolio
© 2011 CMCS FZCO 27
Waterline Report Planned Budget Limit value is < than US$
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 28/46
WaterlineReport–PlannedBudgetLimitvalueis<thanUS$
1,000,000,000
© 2011 CMCS FZCO 28
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 29/46
PorolioRiskAnalysis
© 2009 CMCS FZCO
Aligning
Identification
Categorization
Evaluation
Selection
Prioritization
Identify Portfolio Risks
Authorization
Monitoring &Controlling
Review and Report Portfolio
Performance
Monitor and ControlPortfolio Risks
Benefit Realization
Strategic
Planning
Analyze Portfolio Risks
Develop Portfolio Risk Responses
Portfolio Balancing
Communicate Portfolio Adjustments
Monitor Business Strategy Changes
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 30/46
ProjectRiskCategories
© 2009 CMCS FZCO
Risk
Technical
Higherperformance
goals
Technologyshis
PlaormchangesNewindustrystandards
Complextechnology
Unproventechnology
ProjectManagement
Schedule Budget
Quality Scope
Resources Projectteam
Communica$on
Organiza$onal
Weakinfrastructure
Unclearorganiza$onalobjec$ves
Intra-organiza$onal
resourceconflicts
Shiingfundingavailability
External
Legalchallenges
Shiingcustomergoals
Naturaldisasters
Legalshis
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 31/46
RiskRegisterWithResponsePlans
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 32/46
Balancingprojectsporolio
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 33/46
ThePopularRisk-RewardGrouping
Oysters:HighRisk,HighNPV
WhiteElephant:HighRisk,LowNPV
Pearls:LowRisk,HighNPV
BreadandBuer:LowRisk,
LowNPV
© 2009 CMCS FZCO
InvestorMap;ComparesProposedVs.riginalBudget,GroupedBy
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 34/46
p; p p g g , p y
InvestmentVehicleasperthesectors
© 2011 CMCS FZCO 34
BubbleChart-PlannedBudgetProjectsgroupedbyRegion&basedon
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 35/46
g j g p y g
IRRVsRiskScoreValues
© 2011 CMCS FZCO 35
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 36/46
ProjectsSeleconCategorizaon
© 2009 CMCS FZCO
Maybeconsideredprojects
Mustselectprojects
Mustbeignored
projects
Mustbeconsidered
projects
RISK LOW
NPV LOW NPV HIGH
RISK HIGH
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 37/46
therBalancingPorolioCriteria
Projectsthatwillbuildnewcapitalassetsneedtobebalancedagainstthosethatwillbeusedto
maintainandrecapitaliseexisngassets.
Involvingtheprivatesectoralongwiththepublicsectorinfundingprojectsforthegovernment
sector.
Thebalancebetweenprojectsthatwillbeimplementedindifferentpartsofthecountryiscrucial
forachievingasocio-economicbalance.
Balancingbetweenstrategythemes.rganisaonsmighthavestrategiesto‘growthebusiness,’or‘strengthenthebusiness’amongothers,soagainthechallengeistodecidewhichprojectsto
fundagainststrategy.
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 38/46
MonitorandcontroltheexecuonofthoseInvestments
© 2009 CMCS FZCO
LinkTheProjectbjecveswithTherganizaonbjecvesUsing
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 39/46
TheBalancedScorecard
FinancialPerspecve
§ IncreaseInRevenue(%)
§ ReduconinCostPerSale(%)
§ IncreaseinNetProfit(%)
§ CashFlowFollowingTheProject
Implementaon
InternalProcesses
§ Budgetallocatedtoactualcostrao(%)
§ Timeallocatedtomespentrao(%)
§ Qualityofprojectresultsasseenbythestakeholderstotheproject(0-100%)
CustomerPerspecve
§ NumberofcomplaintsaOertheexecuon
oftheprojecttopreviousnumberof
complaintsrao(%)
§ Growthinnumberofinquiriesfollowing
theproject(%)
§ Complaintsthatrefertoqualitytogeneralnumberofcomplaintsrao(%)
GrowthandDevelopmentPerspecve
§ Numberofconflictsarisenduringthe
project
§ Posiveresoluonofconflictstogeneral
numberofconflictsrao(%)
§ Projectemployeeturnover(%)
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 40/46
EarnedValuePerformanceHistogram
©2009CMCSFZCO
Planned
Actual
I n $ 1 , 0
0 0 ’
s
BudgetatCompleon(BAC)
1 2 3 4 5 6 7 8 9 10
Months
T a r g e t C o m p l e o n
D a t e
C u r r e n t C o m p l e o n
D a t e
200
400
600
800
1000
1200
11
1300
Planned=$500K:DataDate
Actual=$400K
200
400
600
800
1000
12001300
ProbableScheduleDelay=4weeks
Probable
Cost
verrun
=$300K
EsmateatCompleon(EAC)
CostVariance-$100K
Schedule
Variance(Time)
-4wks
ScheduleVariance($)
-$200K
Earned
Earned=$300K
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 41/46
InvestmentsScorecard:ByKB
B bbl Ch / I M
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 42/46
BubbleChart/InvestmentMap
© 2009 CMCS FZCO
Pi Ch t
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 43/46
PieCharts
© 2009 CMCS FZCO
M lple Histograms In A Dashboard
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 44/46
MulpleHistogramsInADashboard
© 2009 CMCS FZCO
Issues Register
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 45/46
IssuesRegister
© 2009 CMCS FZCO
7/29/2019 Using Project Portfolio Management (PPM) to Select the Right Project Investments - By Bassam Samman - iCompetences PPM2013
http://slidepdf.com/reader/full/using-project-portfolio-management-ppm-to-select-the-right-project-investments 46/46